Updated from 12:03 p.m. EST

Shares of Infosys ( INFY) rose Thursday after beating Wall Street's third-quarter earnings and revenue forecasts -- and the strong results could indicate another solid quarter for its offshore peers, analysts say.

The stock was recently up 3.2%, tacking on $1.74 to $55.97, while changing hands at about double the usual volume.

Dylan Cathers, an equity analyst with Standard & Poor's who previously had a sell on the shares due to margin pressures and a rich valuation , bumped his rating to a buy.

"Revenue is still advancing at a very healthy clip," Cathers said in an interview. He expects it to continue to grow at more than 40%, year-over-year, for at least the next few quarters.

For the quarter, Infosys said revenue totaled $821 million, jumping 46.9% from $559 million in the same period last year.

The Indian IT services firm posted a profit of $218 million, or 38 cents a share, for the third quarter, rising from $143 million, or 26 cents a share, in the same period a year ago.

Analysts polled by Thomson First Call had expected a net income of 37 cents a share on sales of $797.3 million for the December quarter.

Infosys also was able to keep margin pressure in check with price increases, benefits of scale and a better product mix, Cathers said. He said the company still has a high price-to-earnings ratio, but its PEG ratio (which compares its P/E to annual earnings growth) is in-line or slightly below its peers, leading him to re-evaluate his earlier rating.

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